PepsiCo, the leading US consumer goods firm, has announced a distribution agreement and the acquisition of $550 million stake in energy drink company Celsius Holdings at the price of $75 per share, corresponding to 8.5% ownership of the company.
Celsius is a US global consumer packaged goods company that produces lifestyle energy fitness drinks.
With this agreement, PepsiCo will become the preferred distribution partner globally for Celsius Holdings and will support the company’s growth agenda, the company said.
“We are extremely pleased to partner with Celsius and excited about the opportunity for our two organizations to drive growth and innovation in the energy beverage category,” said Kirk Tanner, CEO of PepsiCo Beverages North America. “The Celsius brand’s growing momentum coupled with the strength of PepsiCo’s portfolio and go-to-market capabilities create a combination we believe will be very compelling and valuable to retailers and consumers. We are looking forward to seeing the impact these two outstanding organizations can make together to more fully capture energy occasions”.
The distribution agreement became effective on 1st August 2022.
Sources: Celsius Holdings